Good morning to all!
The long weekend is but a distant memory but we are blessed with a glorious warm, sunny week and weekend to come!
Property Listing coming soon! I absolutely love this home. Please reach out to me if you want more info on this property!
Here is the teaser:
- 10 minutes to Roncesvalles
- NO joke Country in the city – Surrounded by mature trees and greenery
- LARGE LOT 67 feet x 148 Feet
- Move in Ready 3 bedroom bungalow
- 2 bedroom basement Apartment
- 1 Bedroom Apartment in the rear
- Super Nice curb appeal and Gorgeous Back Yard!
Why I love this property so much is that it has so many possibilities.
- Move In
- Move in and rent out
- Rent out completely
- Future Development
- Location is soooo great.
Please TIP your Province 15%!
(This kicked in yesterday)
The B.C. government plans to tax foreigners who buy residential property in the Vancouver area – an announcement that follows months of pressure to address foreign speculation that many have blamed for the region’s superheated housing market.
Finance Minister Mike de Jong said the 15 per cent tax, which takes effect Aug. 2, will apply to the sale of all residential properties within Metro Vancouver, excluding treaty lands in the Tsawwassen First Nation. The tax will apply to buyers who are not Canadian citizens or permanent residents, as well as corporations that are either not registered in Canada or controlled by foreigners.
Mr. De Jong says the additional tax on a $2-million home would amount to $300,000. He said the law gives the province the ability to adjust the tax rate to between 10 and 20 per cent.
The announcement is the latest in a series of measures aimed at addressing skyrocketing housing prices in the Vancouver region — an issue that is expected to become central to next spring’s provincial election. The debate has been overshadowed by concerns about foreign buyers and empty homes, as prices increased by more than 30 per cent in the past year alone.
Earlier this month, the province released the first batch of statistics on foreign purchases, which showed about five per cent of purchasers in the Vancouver region over several weeks in June were foreign buyers.
The figures indicated foreign nationals spent more than $1-billion on property in B.C. between June 10 and July 14, with 86 per cent being made on purchases in the Vancouver region.
Last May, de Jong said he wasn’t in favour of a tax on foreign investment, saying he worried it would send the wrong message to Asia-Pacific investors.
The B.C. Liberal government will also introduce legislation this week that will allow the City of Vancouver to impose a tax on vacant homes; and follow through on an earlier promise to end self-regulation of the real estate industry.
Metro Vancouver real estate sales fall almost 20 per cent in July (Derrick PennerVancouver Sun- August 3rd 2016)
Real estate sales tumbled almost 20 per cent in July across Metro Vancouver’s main real estate board compared with the same month last year, the board reported Wednesday though the market remains in seller’s territory.
Detached homes saw the biggest decline, with the 1,077 units changing hands in July, down 31 per cent from the same month a year ago and the second month in a row that sales of single-family homes have declined.
The benchmark price for detached homes — an average of typical homes sold — hit $1.58 million in July, which is still running at 38 per cent above the same month a year ago and up just over one per cent from $1.56 million in June.
“Home sale activity showed some moderating signs in late June and this carried into July,” said Dan Morrison, president of the Real Estate Board of Greater Vancouver.
Board realtors recorded 3,226 sales through the realtor-controlled Multiple Listing Service in July, which is down 19 per cent from the 3,978 sales in July of 2015 and 27 per cent off from the 4,400 sales recorded in June of this year.
However, with a sales-to-active-listings ratio of 39 per cent in July, the market remains in favour of sellers, the board reported. Inventory in the region totalled 8,351 listings in July, which is down 27 per cent from the same month a year ago.
Morrison said July was the first month since January that sales across the board’s region, which includes most of Metro Vancouver except Surrey, and stretches to Bowen Island, the Sunshine Coast and along the Sea to Sky Highway to Squamish and Whistler.
Condo sales, at 1,602 units in July, were down 7.3 per cent compared with a year ago with the benchmark price hitting $510,000, which is up 27 per cent from the same month a year ago.
Townhouse sales in July, at 547, were down 21 per cent from the same month a year ago with a benchmark of $669,000, which is running 29 per cent higher than at the same point last year.
Vancouver home sales ‘normalized’ in July
HomeMarket Update by Steve Randall04 Aug 2016
There was a large drop in the number of home sales in Metro Vancouver in July as activity returned to more normal levels for the time of year.
The Real Estate Board of Greater Vancouver says there were 3,226 sales in the month, down 26.7 per cent from the previous month and 18.9 per cent below July 2015. Most of the decline was in detached homes (down 30.9 per cent year-over-year) while apartments saw a more modest decline of 7.3 per cent.
“After several months of record-breaking sales activity, home buyer demand returned to more historically normal levels in July,” Dan Morrison, REBGV president said.
Prices remained sharply higher than a year earlier with the benchmark composite price at $930,400, up 32.6 per cent year-over-year; apartment prices were up 27.4 per cent to $510,600; detached home prices were 38 per cent higher at $1,578,300.
“We’ll wait and watch over the next few months to see if this marks the return of more normal market trends,” Morrison commented.
What impacts can we expect for us in Toronto?
In my mind there is no doubt that we will see a (reflex) spike in the Toronto market. Many foreign buyers who were set on a Vancouver property purchase will be looking to Toronto now.
Don’t be surprised if Toronto/Ontario introduce their own additional tax of the same amount within the next few weeks/months. It’s a perfect excuse to introduce new revenue generation tools. We have seen surges in sales volumes and prices every time there are lending rule changes, interest rate increases, and additional taxes introduced. Buyers scramble to get their home purchase complete before any of these factors kick in.
As mentioned above, in Vancouver where a $2 million home is an “everyday” kind of a sale the new tax would cost a buyer an extra 300k ofUPFRONT cash. For property purchase agreements that complete after the August 2nd tax introduction but were signed before this date, the 15% tax still applies! Some buyers are planning to walk away from their purchase and forfeit their deposit. Some buyers are going to walk away because they have no choice.
Ten-year spike in home prices transforms Vancouver, new data show
The Globe and Mail BRENT JANG July 13th
The proportion of million-dollar detached homes in Vancouver jumped from just 11 per cent a decade ago to more than 90 per cent last year – a dramatic increase that experts warn is “irrational” and could soon come to an end.
The decade-long price surge has transformed the city from one in which a house worth more than $1-million was once a rare luxury to a place where that million-dollar threshold – a psychological barrier that was once meticulously tracked – is now considered at the low end of the market. And it’s a reality that financial experts and even the Bank of Canada have said is unsustainable.
Researcher Andy Yan, acting director of Simon Fraser University’s city program, released new data on Tuesday chronicling the prolonged increases in Vancouver since 2005, when the city was already by far the most expensive in Canada.
“The idea of a million-dollar house was a relative rarity a decade ago in Vancouver,” he said.
While 11 per cent of detached houses within city limits were assessed at $1-million or higher in July, 2005, that figure was 91 per cent in July, 2015, said Mr. Yan, who examined 66,825 properties valued by BC Assessment.
Newly assessed values for this month will be sent out to homeowners in early 2017. Industry observers say the small number of detached homes listed earlier this year for less than $1-million in Vancouver tended to be on busy streets or tiny lots, or were tear-downs.
Phil Soper, chief executive officer of real estate firm Royal LePage, said the incredible price surges in Vancouver are unsustainable.
“You have severe affordability issues in Vancouver. It has become a serious public-policy issue, so it’s not healthy,” he said in an interview. “We’ve got a market in Vancouver that is appreciating too quickly. Prices are moving upward at an irrational rate.”
The real estate map for Vancouver is divided into the west side and east side. There was once only a smattering of million-dollar properties east of the dividing line of Ontario Street. Today, the east side is awash with detached houses worth at least $1-million.
Over the past 12 months, prices for detached homes in Vancouver have soared 38 per cent on the city’s west side and climbed 36 per cent on the east side. The real estate craze has spread to the suburbs, where it is common to see price jumps of at least 35 per cent for detached properties since mid-2015.
David Ley, a professor of urban geography at the University of British Columbia, predicts prices will soften, not crash.
“No boom goes on forever,” he said. “There are downturns, and we are certainly due for one here – not a hard landing but a softening of the current market.”
Prof. Ley said modest annual increases or even slight declines are possible. “My guess would be somewhere in the range of plus 5 per cent to minus 5 per cent,” he said.
Vancouver’s housing market rebounded after the 2008-09 recession and has been on a tear over the past three years. Prices for condos and townhouses across the region have rallied at least 25 per cent over the past 12 months.
Mr. Soper and Mr. Yan said low interest rates, limited housing supply and foreign capital are among the key ingredients behind Vancouver’s housing bonanza. Prof. Ley agrees that there are several important drivers, though he argues that buyers from China are the “decisive factor” in sales of high-end properties on Vancouver’s west side, sending a ripple effect across the region.
Royal LePage produces a “price composite” in a formula that focuses on typical properties and excludes sales of luxury mansions. It said its sampling provides a better barometer of trends than average prices, which are skewed upward by sales of high-end properties.
The company’s two-storey price composite for the city of Vancouver ascended to $2.36-million in the second quarter, up 30.7 per cent from the same period last year. The city of Toronto saw a 10.5-per-cent increase to $974,937.
The typical two-storey price is up 26.5 per cent over the past year to $1.45-million in the Vancouver region, compared with an 11.4-per-cent gain to $770,676 in the Toronto area.
Nationally, in 53 markets measured, Royal LePage’s two-storey price composite improved to $619,671 in the second quarter, up 10.7 per cent from a year earlier. The firm’s price for all housing types climbed 9.2 per cent over the past year to $520,223.
GTA REALTORS® Release Q2 Condominium Market Figures (see full report)
July 21, 2016 — Toronto Real Estate Board President Larry Cerqua announced another very strong quarter for condominium apartment sales in Q2 2016. Greater Toronto Area REALTORS® reported 8,965 condo apartment sales between the beginning of April and end of June. This result represented an increase of 17.4 per cent in comparison to the same period in 2015.
Condo sales have picked up significantly as freeholds have gotten out of reach of many. I think that developers may once again begin building larger suites to accommodate for those looking to upsize from a smaller micro unit and also to accommodate “empty nesters” who are used to having room to move.
Mortgage Rates
The best residential mortgage rate that I can find currently is 2.34% on a five year fixed.
Rates are not projected to move upward for quite some time. Analysts are predicting a slight move up possibly in the spring of next year.
BMO says 30 per cent of Canadians prioritize debt reduction
The top priority of 1 in 3 Canadians is to reduce or eliminate debt according to a new poll by BMO.
The lender’s wealth management division also revealed that investing and tax efficiency (24 per cent); saving more (23 per cent); budgeting (14 per cent); and spending on personal needs or goals (4 per cent) were the other main priorities.
Priorities change depending on life stages though with Boomers more likely to want to tackle their debt than Millennials (who want to save more).
A number of events were identified among respondents as barriers to saving more or invest. These include stock market losses, failed business ventures, divorce/separation and financial loss on a property sale.
Construction Blog # 16
On the inside
Well the drywall is up and the home has taken on new life. I feel a surge of energy now as the place actually has taken shape. A picture is attached that shows the main living area and kitchen space.
The taping, mudding and sanding should be complete this week and the whole home will get a coat of primer next week!
On the outside
The soffits, eaves, and down spouts have been installed.
The crown mouldings along the roof line have been installed as well ( a detail that I love).
We are now shooting for a November/December move in date. Fingers crossed.
Next Steps
- Primer
- Plaster Mouldings get installed (currently being manufactured)
- Hardwood floors and tiles
- Finished carpentry
- Kitchen
- Painting
Enjoy the rest of the week, Anthony